Tax in Nigeria is based mainly on RESIDENCE, not nationality. The Law Behind It Under: 👉 Personal Income Tax Act Your tax depends on: ✓ where you live ✓ where your income is sourced PART 1: DIASPORANS — DO THEY FILE TAX IN NIGERIA? Let Me Explain With a Simple Story Mama Ngozi travels to the UK. SheRead more
Tax in Nigeria is based mainly on RESIDENCE, not nationality.
The Law Behind It
Under:
👉 Personal Income Tax Act
Your tax depends on:
✓ where you live
✓ where your income is sourced
PART 1: DIASPORANS — DO THEY FILE TAX IN NIGERIA?
Let Me Explain With a Simple Story
Mama Ngozi travels to the UK.
She now works and earns money there.
Question:
Will Nigeria tax her UK salary?
👉 NO (in most cases)
Why?
Because:
✓ she is NOT resident in Nigeria
✓ income is NOT earned in Nigeria
So When Will Diasporans Pay Tax in Nigeria?
ONLY If:
They earn income FROM Nigeria
Examples:
• rent from property in Nigeria
• salary from Nigerian company
• business income in Nigeria
OR
They are still considered tax resident in Nigeria
(This depends on number of days spent in Nigeria — usually 183 days rule)
So Final Answer (Diaspora)
If:
• you live abroad
• no Nigerian income
👉 You generally DO NOT file Nigerian PIT
If:
• you earn from Nigeria
👉 You MUST file tax in Nigeria
PART 2: NGX STOCK INVESTORS — DO YOU FILE TAX?
Let’s Be Very Clear
Trading on:
👉 Nigerian Exchange Group
does NOT automatically mean you must file tax.
Why?
Because in Nigeria:
1. Capital Gains on Shares
Currently:
👉 Capital gains on listed shares are largely exempt
(when traded on NGX, subject to conditions)
2. Dividends
Dividends are:
✓ already taxed at source (10% withholding tax)
What Does This Mean?
If You ONLY:
• buy and sell shares
• receive dividends
👉 Tax is already handled
So Do You Still File Annual Return?
YES — if:
• you are resident in Nigeria
• you have other income (salary, business, etc.)
NO (or minimal obligation) — if:
• your ONLY income is stock trading/dividends
Let Me Be Honest With You
Many people think:
“Once I invest, I must file tax”
Not always true.
Simple Breakdown
Diasporan
• No Nigerian income → No tax filing
• Nigerian income → File tax
NGX Investor
• Only dividends → tax already deducted
• active income + stocks → file return
Short answer: It depends on your tax residency and where your income comes from. Not everyone living outside Nigeria must file Nigerian Personal Income Tax. Let me explain simply 👇 Does Tax Filing Apply to Nigerians Living Outside Nigeria? Under Nigeria's tax law (Personal Income Tax Act), your obliRead more
Short answer: It depends on your tax residency and where your income comes from.
Not everyone living outside Nigeria must file Nigerian Personal Income Tax.
Let me explain simply 👇
Does Tax Filing Apply to Nigerians Living Outside Nigeria?
Under Nigeria’s tax law (Personal Income Tax Act), your obligation depends on:
1. Where You Live (Tax Residency)
You’re considered tax resident in Nigeria if:
You live in Nigeria for 183 days or more in a year
You have your main business in Nigeria
Your employer is in Nigeria
If you live abroad permanently, you may not be required to file Personal Income Tax in Nigeria.
Your Situation (Based on Your Question)
You said:
You live outside Nigeria
You do business outside Nigeria
You only have Nigerian bank account
You use it for stock trading
You send money to family & friends
Here is what applies:
Case 1: Foreign Income Only
If:
Your income is earned outside Nigeria
Business is outside Nigeria
Employment is outside Nigeria
Then:
✅ You may not need to file Personal Income Tax in Nigeria
Because Nigeria generally taxes Nigerian residents, not non-residents.
Case 2: Nigerian Income Exists
You may need to file if you earn income from Nigeria like:
Nigerian salary
Nigerian business income
Rental income from Nigeria
Dividends from Nigerian companies
Nigerian consulting income
In this case, you may need to file with:
Federal Inland Revenue Service (sometimes)
OR
Your state tax authority like
Lagos State Internal Revenue Service
What About Stock Trading in Nigeria?
If you only:
Buy Nigerian stocks
Receive dividends
Then:
Good news 👇
Dividend income is usually:
✅ Already taxed at 10% Withholding Tax
So:
You may not need to file separately.
Sending Money to Family & Friends
This is:
❌ Not taxable
❌ Not income
❌ No tax filing required
So you’re safe there.
Simple Rule
You likely do NOT need to file if:
✔ You live abroad
✔ You earn abroad
✔ Only use Nigerian bank for investment
You may need to file if:
✔ You earn income from Nigeria
One Important Tip
Many Nigerians abroad still file Nil Returns to:
Maintain tax record
Avoid future issues
For visa / loan / investment proof
Not compulsory — but sometimes helpful.
Since you’re active in investment discussions (like your FGN bonds, stocks, etc.), this becomes useful if you plan:
Do Nigerians in the Diaspora Need to File Taxes in Nigeria Without Having a Physical Business?
Tax in Nigeria is based mainly on RESIDENCE, not nationality. The Law Behind It Under: 👉 Personal Income Tax Act Your tax depends on: ✓ where you live ✓ where your income is sourced PART 1: DIASPORANS — DO THEY FILE TAX IN NIGERIA? Let Me Explain With a Simple Story Mama Ngozi travels to the UK. SheRead more
Tax in Nigeria is based mainly on RESIDENCE, not nationality.
The Law Behind It
Under:
👉 Personal Income Tax Act
Your tax depends on:
✓ where you live
✓ where your income is sourced
PART 1: DIASPORANS — DO THEY FILE TAX IN NIGERIA?
Let Me Explain With a Simple Story
Mama Ngozi travels to the UK.
She now works and earns money there.
Question:
Will Nigeria tax her UK salary?
👉 NO (in most cases)
Why?
Because:
✓ she is NOT resident in Nigeria
✓ income is NOT earned in Nigeria
So When Will Diasporans Pay Tax in Nigeria?
ONLY If:
Examples:
• rent from property in Nigeria
• salary from Nigerian company
• business income in Nigeria
OR
(This depends on number of days spent in Nigeria — usually 183 days rule)
So Final Answer (Diaspora)
If:
• you live abroad
• no Nigerian income
👉 You generally DO NOT file Nigerian PIT
If:
• you earn from Nigeria
👉 You MUST file tax in Nigeria
PART 2: NGX STOCK INVESTORS — DO YOU FILE TAX?
Let’s Be Very Clear
Trading on:
👉 Nigerian Exchange Group
does NOT automatically mean you must file tax.
Why?
Because in Nigeria:
1. Capital Gains on Shares
Currently:
👉 Capital gains on listed shares are largely exempt
(when traded on NGX, subject to conditions)
2. Dividends
Dividends are:
✓ already taxed at source (10% withholding tax)
What Does This Mean?
If You ONLY:
• buy and sell shares
• receive dividends
👉 Tax is already handled
So Do You Still File Annual Return?
YES — if:
• you are resident in Nigeria
• you have other income (salary, business, etc.)
NO (or minimal obligation) — if:
• your ONLY income is stock trading/dividends
Let Me Be Honest With You
Many people think:
“Once I invest, I must file tax”
Not always true.
Simple Breakdown
Diasporan
• No Nigerian income → No tax filing
• Nigerian income → File tax
NGX Investor
• Only dividends → tax already deducted
• active income + stocks → file return
Final Truth
Tax is not about:
• where you are from
It is about:
✓ where you earn
✓ where you live
Let Me Leave You With This
Whenever you’re confused about tax, ask:
• “Where is this income coming from?”
That one question…
Will guide you to the correct answer every time.
Rose Ejituru
See lessDo Nigerians Living Abroad Need to File Personal Income Tax in Nigeria If They Have Nigerian Bank Accounts for Investments and Transfers?
Short answer: It depends on your tax residency and where your income comes from. Not everyone living outside Nigeria must file Nigerian Personal Income Tax. Let me explain simply 👇 Does Tax Filing Apply to Nigerians Living Outside Nigeria? Under Nigeria's tax law (Personal Income Tax Act), your obliRead more
Short answer: It depends on your tax residency and where your income comes from.
Not everyone living outside Nigeria must file Nigerian Personal Income Tax.
Let me explain simply 👇
Does Tax Filing Apply to Nigerians Living Outside Nigeria?
Under Nigeria’s tax law (Personal Income Tax Act), your obligation depends on:
1. Where You Live (Tax Residency)
You’re considered tax resident in Nigeria if:
You live in Nigeria for 183 days or more in a year
You have your main business in Nigeria
Your employer is in Nigeria
If you live abroad permanently, you may not be required to file Personal Income Tax in Nigeria.
Your Situation (Based on Your Question)
You said:
You live outside Nigeria
You do business outside Nigeria
You only have Nigerian bank account
You use it for stock trading
You send money to family & friends
Here is what applies:
Case 1: Foreign Income Only
If:
Your income is earned outside Nigeria
Business is outside Nigeria
Employment is outside Nigeria
Then:
✅ You may not need to file Personal Income Tax in Nigeria
Because Nigeria generally taxes Nigerian residents, not non-residents.
Case 2: Nigerian Income Exists
You may need to file if you earn income from Nigeria like:
Nigerian salary
Nigerian business income
Rental income from Nigeria
Dividends from Nigerian companies
Nigerian consulting income
In this case, you may need to file with:
Federal Inland Revenue Service (sometimes)
OR
Your state tax authority like
Lagos State Internal Revenue Service
What About Stock Trading in Nigeria?
If you only:
Buy Nigerian stocks
Receive dividends
Then:
Good news 👇
Dividend income is usually:
✅ Already taxed at 10% Withholding Tax
So:
You may not need to file separately.
Sending Money to Family & Friends
This is:
❌ Not taxable
❌ Not income
❌ No tax filing required
So you’re safe there.
Simple Rule
You likely do NOT need to file if:
✔ You live abroad
✔ You earn abroad
✔ Only use Nigerian bank for investment
You may need to file if:
✔ You earn income from Nigeria
One Important Tip
Many Nigerians abroad still file Nil Returns to:
Maintain tax record
Avoid future issues
For visa / loan / investment proof
Not compulsory — but sometimes helpful.
Since you’re active in investment discussions (like your FGN bonds, stocks, etc.), this becomes useful if you plan:
Getting bank loans
Large investments
Business registration later
See less